When Using the Competitive Parity Method to Budgeting, the Firm

question 90

Multiple Choice

When using the competitive parity method to budgeting, the firm:

• A)matches its percentage-of-sales expenditures with those of others in the market/industry.
• B)spends as much as it can.
• C)allocates some portion of planned sales for the period to advertising.
• D)spends the same total amount as its major competitors spend.
• E)bases its advertising and promotion expenditures on sales.

---

Definitions:

Phonological Rules

The guidelines in a language for how sounds can be combined to produce meaningful speech.

Syntax

The set of rules, principles, and processes that govern the structure of sentences in a given language, specifically relating to word order and sentence organization.

Nativists

believe that much knowledge, particularly in the area of language acquisition, is inherent and genetically programmed into humans.

Grammatical Skills

The ability to use correct grammar structures in writing and speaking.